It is strongly recommended for you to be properly
insured before you hire a car. In some European countries, the car rental
companies take the liability of insuring both you and the car. If you take a car on rent and you do not get
this service, investing on a Personal Accident Insurance (PAI) policy is the
right thing to do. Moreover, if you are driving in a foreign land and new to
the traffic rules and driving conditions – the chances of an accident increase
dramatically. A PAI that covers all costs associated with any mishap while
driving is your safety net.
PAI policies are unpopular due to their association
with injury and death. While some consider it bad luck, most people are falsely
confident that what they see in the news would never happen to them.
Uncomfortable as it is, preparing for a potential personal accident that could
lead to death or dismemberment is a sign of maturity. At this stage, it is also
important to understand that PAI is not the same as medical insurance. There is
a good chance that your medical or travel insurance covers your medical bills
in the event of an accident. Also, note that some PAIs do cover medical
expenses, but that is not their primary goal. PAIs give you a lump sum in case
of injury or to a beneficiary in case of death. If you find yourself in a
hospital, PAIs offer income support in the form of a lump sum or a daily
payout. Some policies will also cover household and other bills during the time
in hospital.
It is also important to remember what and when a
personal accident policy will not cover you. They will not cover losses arising
out of attempted suicide, self-injury, breach of law, accidents while under the
influence of narcotics or alcohol, or in case of wars, etc.
Before you buy such a policy, check with your other
insurance providers if they provide the same benefits. Some credit card
insurance or travel insurance policies will include the option for personal
accident insurance as well. Finally, as with all purchases, read the terms and
conditions and ask and clarify any questions you have before you sign the
documents.
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